Chapter 7 Bankruptcy Law

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What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy mainly covers proceedings involving the discharge of a person’s debt. When filing for Chapter 7 bankruptcy, the person’s debts are forgiven or cancelled. This applies to most, but not all of, the person’s debt. Chapter 7 bankruptcy can therefore be an efficient way for a person to handle their debts.

What Are the Requirements to Filing for Chapter 7 Bankruptcy?

The requirements in filing for a Chapter 7 bankruptcy include:

What Are the Effects of Filing Chapter 7 Bankruptcy?

Some of the positive effects of filing for Chapter 7 bankruptcy include:

Some of the disadvantages of filing chapter 7 may include:

Regarding this last point, a person should make sure that they want to file for Chapter 7 before they do so. Under Chapter 7 laws, they won’t be able to re-file under Chapter 7 until the required 8 years is up.

Are There Any Recent Changes to Chapter 7 Bankruptcy Filings?

There a few recent changes to Chapter 7 filings. The first involves different tests to determine whether the person has enough income to shift the case to Chapter 13. This involves somewhat complex calculations regarding the person’s disposable income compared with personal debts. The assistance of a lawyer may be needed when calculating these values.

Also, there are changes in the way property is valued in a Chapter 7 filing. Before 2005, property was valued according sales auction prices. After 2005, property is valued according to vendor prices. This often results in the more frequent sales of the person’s property to pay off creditors.

Do I Need a Lawyer for Help with Chapter 7 Filings?

Filing under Chapter 7 bankruptcy laws can often be confusing. You may wish to hire a qualified bankruptcy lawyer in your area if you need help filing a claim. Your attorney can help determine your eligibility for bankruptcy, and can also inform you of any alternative options. Also, your attorney can guide you through the process and assist you with any questions or concerns you might have.

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Last Modified: 06-22-2017 12:33 PM PDT

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